Teachers' union seeks to close corporate tax break
BURLINGAME, Calif. (Legal Newsline)-California's largest teachers' union is throwing its political muscle behind a ballot measure that would repeal corporate tax breaks intended to jumpstart the state's lagging economy.
The California Teachers Union on Friday said its governing body has voted to support two measures for the November statewide ballot that would repeal corporate tax breaks passed by the Legislature in last year's budget agreement and require corporate executives to get stockholder approval before spending money on politics.
"The state has cut more than $17 billion from public education over the last two years, and the governor wants to cut another $2.5 billion in his proposed budget," CTA President David Sanchez said. "Our classrooms are battered by cuts. Class sizes have increased and vital student programs have been eliminated. Now is not the time to be handing out tax breaks to a small number of large corporations - everybody must be paying their fair share."
The corporate tax breaks, worth an estimated $1.7 billion annually, are set to begin next year. Republican lawmakers sought the tax breaks as a way to help struggling California businesses.
The tax laws allow companies flexibility to apply operating losses to their tax liability. They also allow firms to calculate their California taxes based on a percentage of in-state sales rather than property and payroll.
The Burlingame, Calif.-based California Teachers Association has formed a political action committee -- Taxpayers for Jobs and Against Corporate Handouts -- to get the tax-breaks measure on the ballot, the secretary of state's Web site indicates.
From Legal Newsline: Reach staff reporter Chris Rizo at email@example.com.